Technical Analysis: $1500 and Beyond

Long-Term Analysis

After bullish signs flooded the markets, the bitcoin price has shifted into an upward rally. According to technical indicators, this rally should last until we hit $820, after which a sideways market will prevail.

If this scenario gets confirmed, quotes would be able to double again to the year-end objective beyond $1800. The current Elliott Wave Theory 5th phase could be evaluated at the same size as the 1st wave that took place on 2015´s 3rd quarter.

Following the “ABC ending,” that would happen at $820, which should be thought as a lateral sideways market

Mid-Term Analysis

Bullish consensus is still getting stronger. According to indicators, the technical objective is a lateral sideways market near $820.

If confirmed, that scenario be seen as another bullish sign, allowing the chance for another climb into an euphoric bubble, more than doubling the price to $1500 and beyond.

Short-Term Analysis

Prices have entered a synchronization process, recovering their lag against technical indicators. A full synchronization in the short-term shows a continued rise to $820.

Japanese Candlesticks Analysis reflects the chance of another upward movement after the arriving to the technical lateral market at $820. However, the time extension of that lateral movement would determine the next bubble´s size.

Staff opinion: We believe the bitcoin price will stay near $700 for a while, acting as a psychological resistance to further increases. After being tested by profit-taking, the bulls will likely attempt to push beyond $700, triggering a rally that confirms the present technical analysis. The timeline for this prediction is uncertain, we believe that it may or may not happen by the end of 2016

What do you think will happen to the bitcoin price? Let us know in the comments below.

Another rise has been recorded. Since our last piece, the bitcoin price has shot up by about another $30 and is hanging around the $680 mark. Bitcoin just keeps booming away, and it’s plausible that the digital currency could potentially reach $700 in the coming weeks if its current streak stays strong.

“Wow, what a night. We’ve been asking for some volatility in the bitcoin price for the last couple of days, and boy did we get it last night.”

This is the second near-$30 rise for bitcoin in the short span of about a week, and several analysts are “blaming” the devaluation of China’s native yuan currency for the alleged spikes in the coin’s price.

As the strength of fiat continues to drop, many asset holders (particularly in China) are seeking ways to retain some form of power and control in their financial futures, and it appears bitcoin is the way to do that. Bitcoin trading and purchasing are at an all-time high in South Asia, and the streak doesn’t seem to be on the verge of stopping anytime soon.

Is ‘Hodling’ the Best Way to Maintain the Bitcoin Price?

However, there is another side of the spectrum. Sure, people are buying coins left and right. Yes, it is likely contributing to the price hikes, but other investors are touting the power one achieves in simply “holding on” and waiting.

Those with a fair amount of bitcoins in their investment portfolios are sitting around and letting what they have grow. Granted, once they reach a certain point, they will seek to cash out and get their money’s worth. The process is called “hodling,” and is similar to the practices witnessed amongst top stockholders.

“’Hodling’ takes bitcoin off the market, reduces the supply available to everyone else, and increases the price as a result. If could also mean signaling to whoever heeds that you value the asset enough to want to hold it, which in its own interpretation, could warrant keen interest from those who are yet to go into it.”

Hoarding bitcoins is neither wrong nor right; same for spending them. Whatever works to increase the price is probably best, but investors are warned that bitcoin is showing some unusual activity as of late, and it’s unclear whether or not the price is coiling or simply settling and correcting itself. Either way, keep an eye out and keep those bitcoins protected.

Bitcoin Price Technical Analysis

Long-Term Analysis

After prices overcome the psychological trigger zone area among $620 and $650, the current phase points to a technical goal near $820.

According to Elliott Wave Theory, the current movement should reach a higher scenario through the 5th phase, from where profit taking would be considered. The old trendline, started in 2013, could be very useful at this stage because quotes still recognize its reference, reflecting that pioneer bitcoin holders could be back in the action with a big hedging marketplace.

Mid-Term Analysis

According to indicators, prices could climb to the next congestion area at the $800 level. From there, a big bout of profit taking is expected through another lateral sideways market—like the one we had seen since August—without any bear movement.

Instead, traders will capitalize on the idea of a renewed, upward march, building a level of support that should be confirmed during November. B

Bullish consensus is still getting stronger, and many technical analysts are coinciding on the bullish chance for late October, while the late 2016 period could be analyzed into a euphoric bubble beyond $820 in a third technical phase.

Short-Term Analysis

A little flag pattern has launched prices to the up side, overcoming the psychological trigger zone at $650. Now quotes are recovering to their technical objective at $820.

According to Japanese Candlestick Analysis, the prices are going up and the next technical scenario could be a continuous rise backed by fundamental data and political factors. The same-sized field recovered in August 2016, and was followed by a lateral sideways market.

The bitcoin price could be recovered now, and may follow with a similar lateral sideways market again.

What do you think will happen to the bitcoin price? Let us know in the comments below!

Cover image courtesy of MPR News.

This technical analysis is meant for informational purposes only. Bitcoinist is not responsible for any gains or losses incurred while trading bitcoin.

Technical Analysis: Bitcoin Price Still Looking Upwards

Long-Term Analysis

Aside from the market determined by the biggest traders, which can be seen through volume indicators during the previous two sideways lateral movements, natural demand supremacy allows prices to leave the $580-$600 support area.

Now, the new technical objective is the $820 level without intermediate resistances, in a bull pattern that could be a fast rally to place the quotes into a new formation that would drive the action even higher.

Mid-Term Analysis

Mathematical indicators suggest that buying activity and prices are going up across the Fibonacci fan lines that every trader is considering right now to place their profit objectives, stops and hedge orders.

Taking this data into consideration through the lens of Contrary Opinion Theory, the present stage could be a rally move to $820, from where another lateral market would consolidate the new cycle with new all time objectives over $1200.

Short-Term Analysis

Japanese Candlestick analysis shows that prices are ready to go across the theoretical trading box to the resistance at $820, perhaps in a rally mode.

The first resistance level could be calculated at $700 because of last month’s congestion, which sent prices to the current figures that mark the start of a new bull cycle. However, signals at oscillators are strong enough to dismiss every intermediate level and the entire trading box, which could be considered over as well.

Staff Opinion: Although the recent Bitfinex hack has shaken up markets, leaving the bitcoin price down longer than we expected, we strongly suspect that the price is preparing for another upward launch, indicated by the technical analysis provided in this article. When this rally will take place, though, will be determined through a balance of stabilized fundamentals and optimistic technical signs.

– Evan Faggart, Senior Editor

What do you think will happen to the bitcoin price? Let us know in the comments below!